Issue 5, 2011. October-November

   

INVESTMENTS IN BRIEF

From hydro to real estate, Bollywood to ski resorts, Investor.ge reports on the latest developments in investment opportunities.

Keti Khukhunashvili

Mziuri Park Reconstruction
Mziuri Park is expected to become the new central park of Georgia. Kensington Georgia, the company that developed Batumi Plaza in 2011, has been tapped to develop the park. Kensington Georgia (www.kensington.ge) is a British-based company founded in 1998 with a portfolio that includes commercial and residential property developments in London and South East England. According to Lasha Matchavariani, the marketing manager at Kensington Georgia, nearly $10 million has been invested in the park reconstruction project, which includes several business units - among them an Olympic-size swimming pool, outdoor pools, fitness, retail and entertainment centers.

Bollywood Shoots Movies in Georgia
According to the Georgian National Investment Agency, Bollywood chose Georgia to shoot two upcoming Indian films. Roop Naik, Director of Wide Angle Creations, an India-based film production house, announced the project in August 2011. Tbilisi media-house Metro Studio and Georgian cinema production company Kartuli Filmi JSC will coordinate the production work in Georgia. The week-long production of the first film, Billa II, is set for for later this month, while the 65-day shoot of the second film Double Trouble reportedly began in October 2011.

Slovakian Thermal Park Besenova to Build a New Aqua Park on Lisi Lake
In an interview with Sarke, Tamar Giorgadze, Deputy Director of Slovakian Thermal Park Besenova, announced plans for a new aqua park and entertainment center in Tbilisi. Construction of Gino Paradise Tbilisi is scheduled to start in late December. The complex, which will be built at Lisi Lake, will include hotels, swimming pools, a children's entertainment center, apartments, conference facilities and shops. The estimated cost of the 2-stage project is 50 million lari, over a two year implementation period, Giorgadze said.
The project will be funded by Slovakian Eurocom Investment and Eximbank, but may involve Georgian partners as well. It is expected that part of the first stage will be completed by summer 2012, including sideshows and an open air swimming pool. An indoor pool and spa center will be finished by winter 2012. The second stage will include construction of apartments and conference facilities. Thermal Park Besenova operates in Slovakia since 2000.

Official FDI Figure Jumps 47%
Foreign Direct Investment (FDI) to Georgia was 47% higher last year than initially recorded, according to an amended report by the Georgian Department of Statistics (GeoStat).
The change, which pushed FDI to over $800 million, was due to a number of factors, noted Zaza Chelidze, the head of GeoStat. A new international methodology allowed statisticians to survey companies created using FDI but also included foreign owned subsidiaries based in Georgia. This resulting in 200 more businesses being included in the final data. The annual survey reflects companies' revenues and losses proportionally to the percent of FDI in the business. Finally, not all eligible companies were included in the preliminary data because they did not respond to GeoStat's quarterly questionnaires. Their responses were however, included in the annual report.